Sun Shines on Prestige Market in Australia’s Noosa

Australian vacation area sees robust sales and record-breaking prices

House price records have been shattered in the final weeks of the year for Australia’s eminent vacation destination Noosa Heads in South East Queensland.

Blessed with a subtropical climate, a protected north-facing beach and an enviable laidback lifestyle, the 4567 postcode has gained traction in 2017, putting it back on the radar for buyers from across the country as well as international markets.

In November a beachfront property, dubbed “priceless” due to its unique size and location, sold confidentially for a record price rumored to be more than A$10 million (US$7.5 million).

The 31 hectare property known as Laguna and located on Teewah Beach Road, Noosa North Shore, which has 470 meters of beach frontage and a contemporary two-story home, attracted interest from buyers from Canada, the U.K., Singapore, Melbourne and the local South East Queensland market, according to Dowling & Neylan’s Adrian Reed, the listing agent for the home.

An aerial view of Laguna, a beachfront property sold confidentially in Novemeber. Dowling &amp; Neylan

Property valuers, who were flown in from around the country to assess the home, were unable to make an accurate valuation due to a lack of any comparable properties.

“What resonated with all who set foot on it was it gave them tremendous privacy and a sense of seclusion yet still being close to Noosa,” Mr. Reed said.

“There’s no one factor in Noosa but a collection of attributes that make it an extremely desirable place to live and invest,” he said.

“There’s the combination of the National Park, the river, beaches and the great food. It’s got a fantastic vibe about it with all the little bars and restaurants,” Mr. Reed said. “It’s the kind of place you don’t want for anything and allows you to live in paradise.”

Unable to comment on the sale price, Mr. Reed was not surprised by the international interest and ongoing strength in the luxury coastal market.

“The Noosa market has never been in better shape,” Mr. Reed said.

“We are achieving record results in most segments,” he said. “My prediction for the marketplace is that we can expect strong competition for premium properties, a shortening of days on market and a tightening of inventory and choice available.”

A bounce backNoosa Heads and its neighboring suburbs were hit markedly during the 2007-08 financial crisis, suffering price falls of up to 50%, according to sales figures recorded at the time by analysts such as CoreLogic RP Data.

But steady growth in 2016—buoyed by increasing tourism figures, renewed business confidence and population growth—has continued in 2017, making it the second-most expensive house and land market and the most expensive unit market in Queensland, according to the Real Estate Institute of Queensland.

Noosa Heads house prices increased 6% to A$903,947 (US$682,452) in the 12 months to October while apartments increased 10.3% to A$704,210 (US$531,657) over the same period according to CoreLogic RP Data figures.

In Sunshine Beach, an upmarket neighboring suburb to Noosa Heads, house and apartment prices increased 11.4% and 10.4% respectively over the same period with more than half of all houses sold for A$1 million or more according to figures compiled for Mansion Global.

A second A$10 million-plus sale was achieved last month with a property on Wyuna Drive, Noosaville. It’s under contract and the price is confidential until settlement, although it was originally asking A$11.9 million (US$9 million). The Paul Clout-designed home has 45 meters of water frontage, six bedrooms, a 25-meter infinity lap pool and self-contained caretaker quarters.

This Wyuna Drive home was listed for A$11.9 million. Tom Offermann Real Estate

Selling agents from Tom Offermann Real Estate said the sale eclipsed last year’s A$9.3 million (US$ 7.02 million) sale of a beachfront home at Webb Road, Sunshine Beach. The newly built home on a double waterfront block attracted several interested parties and two serious offers during final negotiations.

Agency principal Tom Offermann said it followed six weeks of extraordinary sales, when eight properties sold for an average price of A$5.955 million (US$4.5 million).

He describes current conditions as “balanced” with a number of buyers vying for a range of quality million-dollar-plus listings across a number of highly desirable pockets.

“It’s understandable that some buyers might think that they have missed the boat in Noosa, but the reality is that there is nothing but blue sky ahead and no clouds on the horizon,” Mr. Offermann said, following two weekend auctions which attracted significant crowds, registered bidders and sale prices above expectations.

“The low-interest-rate-environment looks set to continue for years, demand is growing, and there is no possibility of significant supply increases. Essentially for someone to check into Noosa somebody has to check out.”